Research shows long haul is a barrier for Low Cost Carriers
Recent research carried out with 1,284 adult Australians by travel and tourism specialist researchers Stollznow Research shows that interest in travelling by Low Cost Carrier (LCC) takes a big drop when the length of the flight exceeds eight hours.
Of the 1,024 research participants who have plans to travel by air, a massive 70% plan to use a LCC for their next trip of less than 8 hours travelling time, but this declines rapidly to 37% who plan to use an LCC for travel over 8 hours duration.
StollzNow Research Director Neil Stollznow told The Mole in an exclusive interview, “There’s a huge drop from short haul to long haul in the LCC market and the reality is that these figures paint a grim picture for full service airlines in the short haul market, but also while there are still a large number of people willing to travel long haul by LCC, this is perhaps less than some of the long haul LCC carriers would have liked”.
He added, “Those most likely to use short haul LCCs come from regional Australia, blue-collar backgrounds and are younger, but demographic differences for long haul travel are interesting, with higher use by those who live in regional/rural Australia and those in blue-collar employment.”
“Households where the income is above $70,000 per annum are least likely to use LCCs for long haul travel. although they are just as likely to use LCCs for short-haul travel.”
Neil confirmed that the research findings showed that there was no difference in the likelihood of using LCCs by the State where Australians live and their gender.
Neil also told The Mole, “These results are another nail in the coffin for full-service airlines, with short haul travel for full service airlines a market that is in decline.” “Only a new business model can save this market”.
“The long haul situation is not so dire for full service carriers who can expect to continue with good loads, especially given universal travel growth, but LCCs are also going to take a big bite out of this market!”
The Stollznow Panel is made up of 1,000 households nationally and is statistically representative to ± 2.8% at the 95% confidence level and the research was carried out in November / December 2006 by a self-completion survey.
Neil Stollznow can be contacted on + 612 9953 7543 or [email protected]
Report by The Mole
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